Solid Power, one of the leaders in the race to bring solid-state lithium-ion batteries to market, recently stumbled. But a new deal with BMW could provide the necessary impetus.
After going public through SPAC in late 2021, Solid Power’s stock price has followed SPAC’s all-too-familiar rise and fall, trading at an initial discount of $10 for most of this year, and CEO Douglas Campbell has announced his retirement , causing the stock market crash. 🇧🇷
Campbell said that while the company was able to send sample cells to partners BMW and Ford in time, it struggled to find talent for its facilities and quality materials to make its batteries.
Solid Power was founded in 2011, a year before the battery pioneer A123 collapsed. The bankruptcy of the largest company has undoubtedly left its mark on the founding team. Rather than trying to compete with the big battery makers like LG, CATL and SK Innovation, Solid Power has long strived to provide the biggest battery makers with battery materials that allow for denser, lighter cells.
However, to secure these large long-term contracts, Solid Power still needs to prove that its materials can be mass-produced. Building an innovative cell by hand in a lab is one thing; Making hundreds or thousands in a short time is another.
Solid Power made progress and launched a pilot cell production line for BMW and Ford in June. But this line apparently had some drawbacks and production was not progressing as fast as the company would have liked. It still has a lot of cash — more than $370 million in cash and securities, according to filings with the U.S. Securities and Exchange Commission — but it needs production experience to overcome all obstacles.
Type BMW: Today, the two companies announced a comprehensive joint development agreement in which BMW will pay Solid Power $20 million in exchange for the company’s manufacturing expertise. BMW will replicate Solid Power’s pilot production line in Germany and will also send battery and production experts to Colorado to help troubleshoot the original pilot line.
Source: La Neta Neta
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
